The price you want versus what the market thinks can be two very different things. Fortunately, there are several property valuation tools and tactics to help you navigate this complex process and determine a realistic price for your home before you decide to put it on the market – or off-market with Artis.

A Comparative Market Analysis (CMA) is one of the most reliable methods to estimate your home's value. But what exactly is a CMA, and how does it work?

A CMA involves analysing recent sales of similar properties in your area. These comparable properties, or "comps" are typically similar in size, condition, location, and features to your home. By comparing your property to these recently sold homes, you can get a good estimate of its current market value.

Real estate agents often provide CMAs as part of their services. They look at a variety of factors, including the sale price of each comp, how long each property was on the market, and any differences that might affect value. For instance, if a comp has a newly renovated kitchen and yours doesn’t, the agent will adjust the value accordingly.

CMAs are crucial because they give you a realistic view of what buyers are currently willing to pay for homes like yours. This data-driven approach can help you set a competitive price that attracts buyers without undervaluing your property.

In today’s digital age, online valuation tools have become incredibly popular. Websites like realestate.com.au and openagent.com.au provide estimated home values based on algorithms and data analysis. But how accurate are these tools?

Online valuation tools use data from public records, recent sales and property features to generate their estimates. These tools can give you a quick snapshot of your home’s value and are an excellent starting point for your research. Additionally, your lender might provide a market value estimate based on their own algorithms and analysis.

However, while these tools are convenient and easy to use, they do have limitations. The algorithms may not account for unique aspects of your property or recent changes in the local market. Therefore, while online valuation tools are helpful, they should not be the sole basis for your pricing decision. Use them as a starting point, and then supplement with more detailed research and professional advice.

For a more accurate and reliable estimate of your home’s value, consider getting a professional appraisal. But who can conduct an appraisal, and what do they consider?

Professional appraisals can be conducted by licensed appraisers, banks, real estate professionals or private certifiers. These experts take a comprehensive look at your property, considering factors such as:

• Property condition: The overall state of your home, including any recent renovations or necessary repairs.
• Location: The desirability of your neighbourhood, proximity to amenities, schools, and public transport.
• Market trends: Current trends in the real estate market, including supply and demand dynamics.

Appraisers also compare your home to recent sales of similar properties in the area, much like a CMA, but with a more in-depth and systematic approach. Because of their expertise and thorough analysis, professional appraisals are often more accurate and reliable than online tools.

Understanding how market conditions and trends influence property values is essential for setting the right price. Several factors can affect the real estate market, including:

• Interest rates: Rising interest rates can reduce buyer demand, as higher borrowing costs make it more expensive to finance a home purchase. Conversely, lower rates can boost demand.
• Supply and demand: The availability of homes for sale versus the number of buyers looking can significantly impact property values. A surplus of homes can drive prices down, while a shortage can push them up.
• Economic indicators: Broader economic conditions, such as employment rates, inflation and economic growth, also play a role in property values.

By staying informed about these factors, you can better understand the market dynamics at play and set a more accurate price for your home. Regularly check real estate news, reports and data to keep up with the latest trends.

One of the most innovative ways to gauge your home’s value is to let the buyers tell you. Platforms like Artis allow you to passively list your home and test buyer appetite without fully committing to selling.

By listing your home on Artis, you can receive genuine offers from interested buyers, giving you a real-world sense of what people are willing to pay. This feedback can be invaluable in setting your price, as it reflects current market conditions and buyer preferences.

Moreover, listing your home on Artis is free and easy. Simply download the app, create your listing and start receiving offers. This approach not only helps you determine your home’s value but also connects you with potential buyers in a low-pressure environment.

Determining your home’s worth involves a mix of using property valuation tools, professional appraisals, market analysis, and real-world feedback from potential buyers. By leveraging these strategies, you can set a competitive price that reflects your home’s true market value and attracts serious buyers. Ready to find out what your home is worth? Download the Artis app today.